Unlocking Hidden Assets in Gary February 4, 2014

About Delta Institute -Founded in Work in partnership with business, government & communities in the Great Lakes region -Specialize in market-driven environmental solutions that are good for business, good for the environment, and good for communities

A Community Liability Vacant houses: –Eyesore –Harbor gangs and drug dealers –Depress property values –Potential fire hazard

Vacant homes = Hidden assets

Hidden assets = Enhanced value

Deconstruction Defined Deconstruction is the process of systematically dismantling a building that would otherwise be demolished. The process allows harvesting of reusable materials and diverts building waste from landfills.

Environmental Benefits of Deconstruction Reduce landfill waste Reduce toxic dust from the job site Reduce lead and heavy metals leaching into soil Reduce the consumption of new resources through reuse Create new green open space

Economic Value of Deconstruction Create deconstruction jobs – typical house takes 8-10 days for 6-12 people at $12-$23/hour Reclaim old-growth lumber for resale Reuse flooring, woodwork, lighting and plumbing fixtures at lower cost Create jobs in value-added processing Build a regional market for reclaimed lumber

Delta’s Detroit Deconstruction Partnership with Southwest Housing Solutions and Wayne County –RFP issued in September, 2013 –Bid awarded in October 2013 –Work began fourth week of October Federal dollars for demolition and workforce development through deconstruction 8 houses deconstructed 45,000 board feet of reclaimed lumber 3,000 hours of labor 25 jobs for 3-5 weeks

Deconstruction Jobs Houses deconstructed = 8 Time period = 5 weeks Workers = 25 Total hours worked = 3,000, or 75 worker weeks Trainee pay = $8-12/hour Experienced worker pay = $ /hour Total payroll to date = $42,000

Value of Reclaimed lumber 45,000 Board Feet of reclaimed lumber (approximately 61,000 linear feet) Estimate of retail value = $100,500

Value-Added Processing 2 large wardrobes (7' x 3‘) of reclaimed walnut Material cost = $ labor hours at $25 per hour Sale price =$4,500

Counter/desk = 30 square feet 10 labor hours at $25/hour Sale price = $1,200 Value-Added Processing

Partnership with Strand Design Bottle openers sell for $25 at Whole Foods and Wall clocks sell for $105 at

Opportunity Deconstruction is a tool to create jobs, reclaim valuable material, and create open space. Gary has the opportunity to transform its vacant and abandoned houses from a liability to an asset.

Contact Delta Institute Illinois Office: 35 E. Wacker Drive, Suite 1200 Chicago, IL t Michigan Office: 600 W. St. Joseph Street, Suite 1G Lansing, MI t Jean Pogge Chief Executive Officer t ext. 31 Eve Pytel Director t ext. 28